Define Amortization & Impairment?

Answer Posted / afridi

1. The paying off of debt in regular installments over a
period of time.

2. The deduction of capital expenses over a specific period
of time (usually over the asset's life). More specifically,
this method measures the consumption of the value of
intangible assets, such as a patent or a copyright.

impairment
Reduction in a firm's capital as a result of distributions
or losses.

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